Deflation recorded in Poland in July

The consumer price index in Poland dropped to -0.2 percent year-on-year in July, the Central Statistical Office (GUS) said on Wednesday. In month-on-month terms prices also declined by 0.2 percent. Prices of clothing and footwear declined the most month-on-month, by 2.8 percent. Prices in the food and beverages segment declined by 1.1 percent m/m, GUS said. Economists surveyed by ISBnews had expected the CPI to come in at -0.2 percent y/y. The Economy Ministry saw the index at 0 percent. “This is the first time in history when deflation was recorded,” BZ WBK analysts wrote in an e-mailed comment. “This event is due to positive supply shocks” “Because of recent sanctions, oversupply of food on the domestic market will be observed also in the upcoming months, prolonging the period of negative CPI to several months,” the economists wrote.